Ola has now more than halved its cash burn at its food business FoodPanda and now plans to make its private labels the correspondence for growth, even as the food tech war gets much more aggressive, driven primarily by the deep-pocketed rivals like the UberEats, Swiggy and Zomato continued discounting, three people directly aware of the company plans.
According to the new report which has been revealed, the FoodPanda will now be going to focus more on the running the business in a much more cost efficiently by focusing on its own private labels and cloud kitchens which include the Great Khichdi Experiment Lovemade and FLRT brands, and even continue to use the Ola customer base.
“In January, Foodpanda cut marketing and customer acquisition costs by 2/3rds, in line with Ola’s de-prioritization plan for the business regarding investment. The internal expectation is ordered will fall by 60%, but business will grow more efficiently,” said one person, adding that Ola plans to focus on scaling its payments, lending, and core transportation portfolio, which includes scooters, international business, and electric vehicles.
“These verticals alone are large markets, and play naturally to Ola’s strengths,” said another top executive from Ola.